What Does It Mean When a Company Does a Strategic Review of a Department
Great strategy reviews are the heartbeat of any strategic management process. Reviewing the status of your goals and objectives, adapting your tactics at regular intervals will assistance ensure you're working on the right stuff.
For more than resources on building your strategic plan, view the Essentials Guide to Strategic Planning.
Video Transcript
Hi, my name's Erica Olsten with OnStrategy. Today'southward whiteboard session is nigh running and participating in a great strategy review. Nosotros'll walk through how to set up i upwards, the content yous'll walk through, and how the presentation needs to menstruation.
But before we get besides far ahead, let's talk about the purpose of a strategy review. Strategy reviews are the heartbeat of a strategic management procedure, and what I mean by that is without a strategy review, you practise not have a living, breathing plan. And everybody wants a programme that's live and we're using, and we're executing, and we're talking about it, and nosotros don't desire it to sit down on the shelf.
This is how your plan does not sit down on the shelf. So, permit's talk about how you really run a great ane, and how you make sure that it doesn't experience operational, that it feels strategic, and it'due south going to experience strategic when you're talking virtually are we working on the right stuff? Not what are we working on. And every bit we walk through this, we'll make certain that that's how yous reach working on the right stuff instead of what are we working on.
All right, so the setup. Timing. Ordinarily y'all're going to do your review after the financials accept airtight for the previous period or the previous month in this instance. So for example, if you lot're doing a review about January performance, you're going to want to do your review when the books take closed in February, probably the second or third week of Feb most of the fourth dimension.
How often do you have a strategy review? Nigh organizations have monthly reviews, sometimes quarterly is as much as people can take on. I would highly recommend monthly; 60 to 90 minutes is a pretty good target.
Attendees. Who should attend? Those individuals that ain goals absolutely need to be in attendance and potentially those folks that own initiatives as well. You might want to proceed it smaller to get started, just to kind of become it going, and so it may be expanded broader. At the end of the twenty-four hour period, it's a cracking communication tool, and certainly, can be opened to everybody in the organization if that's what you choose.
And last, but certainly not least, the biggest thing with writing a keen review is having the right data and having it served up in the right manner. You need to take your data for your key performance indicators, so the quantitative stuff. And the qualitative stuff, in that location'southward plenty of stuff in plans that are just tracked based on red, green, yellowish. So, you need an updated set of that equally well.
To brand that really happen, you demand a system. Nosotros accept a software system, every bit near of you know, so that'south what our system does. In that location are many other software systems out there. Spreadsheets practise the trick, too. All the same you lot do information technology, the information collection is critical to making sure the residual of the process works.
All right. And so what'southward the content? Here's a standard structure of a strategic programme. Yours might expect a little different. Strategic objectives, annual goals, initiatives and action items. And so what you're not talking about are action items. That'due south too tactical.
Strategic objectives are going to be how we construction the agenda for the reviews, and we'll talk nearly that in just a minute. More probable, you're going to be talking about the goal level, the annual goal level, and peradventure touching on some initiatives if it's relevant. And then, the right level is the annual goals or the corporate goals.
All correct. So there'south 2 dissimilar ways to construction the agenda. Ane way to structure the agenda is past functional area or by department or division, whereby the sales team and the R&D Ops, whatever, are talking nearly their performance confronting goals and probably some of their initiatives.
Some other way to become well-nigh information technology would be to report it on the themes of your program or the strategic objective expanse. So yous would talk about how are doing organizationally from a financial perspective, from a client and a growth perspective, from an operational excellence perspective, and from a people perspective, or however your plan is structured.
I prefer this because this can feel a picayune operational, and this is more than holistic in the context of where are nosotros going organizationally, not but what are the different departments doing? Then my recommendation would definitely be to do information technology like this. Most of the fourth dimension, you tin go through all of the areas of your plan in lx to 90 minutes, but if y'all have a really big plan, you lot might consider doing two of the perspectives in one calendar month, and and so the next two the next month and however yous mix that upwardly merely to exist a piddling bit practical about the fourth dimension.
All the same, you do it, the agenda would be structured such that each goal possessor has three to 5 minutes to talk about their performance against their goal, and I'll talk nearly that in just a 2d. And then the agenda would menstruum through each of the goals in the financial area, market growth and so on.
All right, so the virtually important part is that the goal champions, or the goal owners, are clear about what we're presenting. And then, we obviously using the information equally our visual, and the talk rail would sound something like this. In three to 5 minutes review, are nosotros on plan? And are we on plan against the performance members? The two to 3 that he or she might be presenting. What take we accomplished in the last "X" number of days. If you're doing information technology monthly, in the last thirty days. What's the focus for the next xxx? And actually important, is there whatever help that's needed and are in that location whatever changes to the plan or the strategy that this goal champion is recommending?
As a tip, 20% of the three to 5 minutes should be looking back and 80% looking forrard. Strategy reviews are absolutely about adapting for the future, non just looking at the by.
The other tip I would give you if you are a presenter is keep it at the 15,000-foot level. Continue it to three to five minutes. Again, it's about, are nosotros moving forward in the right direction? Not getting into all of the detail, and that'due south definitely a trap that will make the strategy review not feel great and feel really kind of bogged downwardly.
So with that, adept luck running your get-go strategy review. Subscribe to our YouTube channel. Happy strategizing.
Source: https://onstrategyhq.com/resources/video-running-a-great-strategy-review/
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